Words / Q / Business

quality of earnings

noun

C1CEFR level
65/100Rarity: rare
TechnicalRegister

An assessment of how sustainable and cash-backed a company's reported profits really are.

The quality of earnings review flagged that a third of last year's EBITDA was one-off contract revenue.

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance